Infotainment technology is a rapidly developing technology in the entertainment industry. Embedded infotainment systems in automobiles help deliver entertainment and information. The technology was developed in order to enhance driver assistance systems in cars and light-duty trucks. The first entertainment system in a vehicle was the radio system, developed in 1960. Presently, due to advances in technology, infotainment systems in vehicles perform activities such as managing and playing audio content, utilizing navigation for driving, delivering rear-seat entertainment such as movies, games, and social networking. Furthermore, these systems also receive and make calls, send messages, access Internet-enabled or smartphone-enabled content such as traffic conditions, sports scores, and weather forecasts. Smartphone connectivity helps to utilize the advance development made in a rapidly expanding smartphone-based infotainment system.

Some factors driving the in-vehicle infotainment systems market include high rate of adoption of infotainment technology and the demand for rear seat entertainment and smart cars. In the era of computers and mobile phones, consumers demand more human-machine interface and low power usage from automobiles. In order to meet this demand of consumers, infotainment technology plays a vital role in helping out with the best solutions for consumers. Vendors are focusing on various developments such as the Atom processor developed by Intel and the Windows Embedded Automotive 7 platform developed by Microsoft in order to integrate infotainment systems. In-vehicle infotainment systems provide good quality rear seat entertainment services such as audio, video, as well as technologies that can assist the driver. A majority of automobile vendors are emphasizing on adopting various technologies and techniques for the transformation of ordinary cars into smart cars. In-vehicle infotainment systems utilize Bluetooth technology for drivers to control the system with voice commands, touchscreen input, or physical controls. Several automotive component suppliers are integrating existing vehicle navigation systems with mobile phones. A key restraint for the market is the provision of infotainment systems in premium and luxury vehicles. Security and privacy issues are also major challenges for the market, as consumers are concerned about vehicle hacking or having viruses in vehicles. Therefore, the automotive industry is ensuring infotainment systems are safe and secure. The market is more opportunistic for creating superior experience for users using in-vehicle systems. Providing cloud services, which can reduce costs due to limitless computing resources and less powerful CPUs and less memory usage is the opportunity for the market.

The in-vehicle infotainment systems market can be segmented based on components, services, application, and region. Based on components, the market can be classified into hardware and software. The hardware segment further classified into graphics processing unit, LCD touch screens, user-controls, voice recognition technology. The Software segment consists of various cloud based applications, operating systems such as Linux and Android. In terms of services, the market can be segregated into entertainment services, phone services, and information services. Based on application, the market can be classified into tier 1 automotive vehicles, autonomous vehicles, rail and transit, and inflight entertainment. In terms of region, the market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. The market in North America is expected to expand due to advances in technology and the presence of strong players of in-vehicle infotainment systems in the region. Europe is an emerging market for in-vehicle infotainment systems due to the adoption of telematics endorsement such as vehicular technologies, road transportation, road safety, electrical engineering etc.

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